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6 maltatoday | SUNDAY • 27 MARCH 2022 OPINION 2 maltatoday EXECUTIVE EDITOR KURT SANSONE ksansone@mediatoday.com.mt Letters to the Editor, MaltaToday, Vjal ir-Rihan, San Gwann SGN 9016 E-mail: dailynews@mediatoday.com.mt Letters must be concise, no pen names accepted, include full name and address maltatoday | SUNDAY • 28 MAY 2023 Joe, Mary and the 100,000ers: a case for targeted support Editorial STATISTICS tabled in parliament by the Finance Minister show that in 2021, there were almost 5,000 people who declared income of more than €100,000. The irony of the situation is that these wealthy individuals are benefiting from government's energy support measures, in the same way as ordinary Joe and Mary who earn €15,000. Indeed, the 100,000ers are most probably bene- fiting more; because the generous subsidies have frozen the costs of their water- and energy-guzzling swimming pools, and luxury lifestyles. Fuel for their high-powered cars and yachts is also subsidised in the same way as fuel for Mary's ordinary car. The indiscriminate energy and fuel support, that government is affording to all households and busi- nesses, will have cost taxpayers more than €1 billion by the end of this year. This expense has admittedly helped isolate Malta from the impacts of higher energy prices internation- ally, allowing the economy to continue prospering. But it is also the single largest public outlay that is having an impact on the country's deficit, which is slated to moderate to 5.1% this year. The European Commission last Wednesday rec- ommended that EU member states start phasing out universal energy support measures by the end of this year, and instead adopt a targeted approach to shore up the most vulnerable. The recommendations are not binding but indicate the direction the Brussels executive wants member states to take. Reining in expenditure will help bring deficits down and even- tually set countries on a healthy path to sustainable finances. Let us be clear, Malta's debt level – which is the ultimate drag on any economy – is nowhere near alarming. Despite debt having increased substantially over the past three years as a result of necessary ex- traordinary spending during the COVID years (and after that, the Ukraine war), Malta's debt-to-GDP ratio is still expected to remain below the 60% mark this year, and the next. The main issue here is not a firefighting exercise to address a debt emergency, but a judicious rebalanc- ing of spending, to start rebuilding enough buffers for the government to have more room to manoeu- vre in the future, should another major crisis hit the world, or region. It is within this context that the Finance Minister, and more importantly the Prime Minister, under- stand the need to map out an exit strategy from the current state of affairs that sees indiscriminate ener- gy and fuel support. Government already distinguishes between income thresholds in its tax refund scheme. Workers who earn more than €60,000 do not qualify for the tax re- fund cheques. This was posited as a measure of social justice when the scheme was introduced in 2018. The same principle should apply to energy support. People who earn above the €60,000 threshold are better placed to finance their own energy-guzzling lifestyles. The funds saved from such a decision could be used for a permanent tax cut that would benefit the hardworking middle class. Fuel subsidies should also be phased out gradually, and financing directed towards renewable energy projects. The public bus service is already subsidised to allow free transport. It may not be as efficient but it is an alternative available to everyone. Adopting a socially just approach will ensure that people who are unable to make it to the end of the month with their wage or are struggling to do so, find the required support to break the cycle of despair. MaltaToday's survey on income and inflation shows that at least 121,000 are struggling to make it to the end of the month. Admittedly, a relative majority are still comfortable albeit unable to save for a rainy day, having seen their disposable income erode as a result of food and ser- vices inflation. This cohort of middle income earners also needs to be given a breather, and targeted support could bol- ster their situation. Robert Abela's government must start thinking more like a modern socialist party that places great- er emphasis on pulling up the middle class and the most vulnerable. The promise of unlimited support to everyone, for as long as it takes, will start to sound hollow when the EU starts breathing down the neck of member states who fail to rein in runaway expenditure. It won't help having to make forced drastic cuts in a context where people have been given the impres- sion that money is not a problem. Abela would be doing himself and his government a favour by so- bering up to reality, and redirecting financial help to where it is truly needed. The 100,000ers certainly don't need government to shore them up. All they need is for government to create the right economic conditions that allow them to earn more. But Joe and Mary could do with a direct boost in income that makes their life a little bit easier. Energy support should be given to vulnerable and average households, giving the government space to redirect expenditure into public investments; and providing middle class workers with a permanent, meaningful tax cut. 28 May 2013 Police Commissioner reinstated despite not meeting criteria FORMER Police Superintendent Peter Paul Zammit was recalled into the public service to be appointed Police Commissioner despite not qualifying for reinstatement. A letter tabled in Parliament by home affairs minister Manuel Mallia shows that the minis- try's permanent secretary informed the Office of the Prime Minister that Zammit "does not qualify for reinstatement as he is over 50 years of age and had resigned from the service on pension after having completed 25 years of service in the Police Corps." However, the ministry recommended that the qualifying criteria should be disregarded. In a letter dated 17 April, Kevin Mahony, the ministry's permanent secretary wrote: "In view of the experience of ex-Superintendent Peter Paul Zammit, I highly recommend that in this particular case, the age and retirement factors should be overlooked as explained above and favourably consider his recall in the Police Force as required by Section 8 (c) of the Pensions Regulations (Chapter 93) as amended by Act IX of 1990 and by Regulation 3 (b) of the Fifth Schedule of the Police Act (Chapter 164)." In the letter, the ministry explains that during his years of service, Zammit "always served with dignity, efficiency and diligence and was an excellent example of respect for authority." It also notes that following his resignation, Zammit graduated as a Legal Procurator and his legal acumen were considered when the government opted to recall Zammit as Com- missioner. The ministry also pointed out that in the past similar requests were accepted and cit- ed the reinstatement of Sebastian Psaila and John Portelli, who were recalled due to their expertise despite not meeting the established criteria. Following the ministry's assessment, the home affairs minister wrote a letter to Zam- mit in which he informed him that following consultation with the Public Service Commis- sion, the former Superintendent was appoint- ed as Commissioner on Scale 2 as of 13 April. ... Quote of the Week "The law states that CBD products with less than 0.2% THC are legal. This is in line with EU law. With that percentage you cannot get high, you have CBD creams and CBD shampoos." Reforms Parliamentary Secretary Rebecca Buttigieg responding in parliament to scaremongering by PN MPs on cannabis and the sale of harmless CBD joints from shops MaltaToday 10 years ago